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tv   Bloomberg West  Bloomberg  March 3, 2014 6:00pm-7:01pm EST

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>> live from pier three, welcome to "bloomberg west" where we cover the future of business. coming up, put a on this. silbterview with ben ermann. find what he wants to say. googles private terminal is a step closer to taking off. estrogen has started for a new terminal to be used mostly by
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google executives. we will look into how the terminal could benefit with tech companies in silicon valley. to the lead. the race to ruby connected car. apple announced a new progress carplay.gram called it will allow certain iphone features like getting directions, and music, making calls to appear in a car's built-in display. this'll be showcased in select mercedes, volvo, and foerr ari models. jon erlichman is in outlay with more. how exactly is it going to work? >> i think they're just trying to go to the next step beyond having your phone in your car and navigating things like the mapping feature. if you can basically connect your phone through the dashboard in a bigger way, maybe in makes
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it easier. maybe it makes it a better and safe experience, whether you are using your phone. whether you are using something like apple maps or siri. questions,biggest blackberry is in this game. microsoft is in this game. what took apple so long? these are important partnerships with the auto manufacturers. there have been stories about those who wanted to be in business with apple but apple likes to control as much as the process as possible. to make sure these things go really well, there has to be trust on both sides. both with a company like apple. we are getting too far along. this is the new battlefield here at apple cannot wait much longer because of the other players. >> i also want to bring in gene covering apple since 1995. what do you think about the announcement with this?
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we know that apple has been talking to automakers for a while. now we see the fruits of that. is a step. it is taking the technology of. what we think about it is this. apple realizes that the next area of innovation and they are trying to make it easier to use and lock you in. it is less about making money some ofrplay and taking the friction out of using your phone which will make you more interested in holding onto your iphone longer or getting another iphone or i had her devices. >> apple is approaching this differently than library or microsoft appeared at the technology is not going to be embedded into the car. it is more of a plug-in. right? >> exactly. there will be some basic hardware that all of the carplay
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will have. a button will allow you to activate siti. -- siri. is to bee screen, it determined what we will actually see on that. normally, if you do not have an iphone on your screen, you have other mapping tools and things like that. you do not need an iphone to optimize some of the entertainment features of the car. it would take some of the friction out which is what they're trying to accomplish. >> what is your take on the brands that apple is working with here? otherwise, we're seeing a lot more high end manufacturers. >> i think this is pretty common. autoigher end manufacturers like to be in a position to offer you lots of bells and whistles. they love exclusivity. that, as one of the first partners, which in a nice
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position to say that to any of your luxury car shoppers. obviously, down the road, and we are heard from other manufacturers saying we will be part of this pogrom at some point, if apple truly wants to make this about being connected everywhere for anyone who was part of this world of apple devices, they're going to have to open the doors to other players. the very much plan on doing that. >> the lifecycle of a car is longer than the lifecycle of an iphone. is apple committing to doing things a certain way for 10 years? that is how long you might have your car if not longer. >> they will probably keep changing. ae car may want you to buy new car. from apple's perspective, as you hold on, the average life u.s.tancy of a car in the is just under seven years. during that time, you typically with apple products will spend
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$5,000 on different projects. i think they're interested in locking you in. i ensure the automotive company will want you to increase how fast you buy the car. apple may be able to order it more quickly. >> how big of an opportunity is this for apple in terms of revenue? fortifies the halo effect. this is another angle to the halo effect. really is inty keeping their existing base happy. it is more about that than it is a specific website to revenue. i think it is keeping the base in an android out. apple has really huge market share in the u.s. today. we're seeing reports that apple is hiring a significant hundred of new engineers. what do you know about this? what does this mean about some
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of the stuff they are working on? >> there is clearly new stuff coming. the company on friday talked about that on their shareholders day. we know there's new stuff coming. i attribute most of these rumblings about hiring as more as standard operating procedure. keep in mind if you look at the total number of devices, 300 million a year, these are huge numbers. the fact that they are hiring a lot of people in asia were the supply chain, they better be. they are continuing to grow their business. they feelsign that comfortable that they are even growing. some do not believe apple is growing at all. maybe at the base level that is a positive sign. >> you have also heard some big numbers about small screened that they are producing like that might be small enough for a watch. tell us what you have been hearing. >> there have been some reports
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now. this is a good example of some big numbers out there that you need to take with a grain of salt. recently there have been reports of the asia that between 40 and million orders are for small screens which is probably more like a fit than a watch. the reality is is is the most likely product category in 2014. some of these numbers, the reality is that there is some jockeying going on for supply of these screens. probably numbers you need to take with a bit of salt. we think the real numbers are probably closer to 10 million as opposed to these 40 or 60 million. >> what about a larger iphone? is that coming? >> it has to be. the company has said that they believe there is value in a bigger screen phone. the cycle will suggest it will
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be august or september. if you're interested in buying an iphone, it makes sense that you want the bigger screen to hold off until the fall. lacks do you want one of those bigger iphones? apple fit bit? >> you could fit more people in the picture. all right. thank you so much. "bloomberge more of >> west" after this. ermann started a slew of companies before finding this. life was interview coming up. -- my exclusive interview coming up. ♪
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anentrepreneurship is important life skill. so important that a nonprofit called build is working to tell inner-city children how to build businesses. he shares his own words of
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wisdom where he was honored over the weekend. he started no less than five companies that all failed before founding the online piboard side. i started out by asking him why he chose to sit port build. i was introduced by jack dorsey. i thought the mission was really cool. i think the idea of getting kids excited about entrepreneurship is a really good idea. it is so applicable to real life. sometimes school can feel a little abstract and not connected to their day to day. >> why do you think it is important to teach kids entrepreneurial skills to get them to stay in school? >> a lot is about trial and error. it is really easy when you are a student to get discouraged or tell someone you're not smart enough or not meant for something. building the discipline of taking the criticism and keeping going is a really great thing, especially for high school kids
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to develop as early as they can. >> people and technology have such diversion views on education. peter is trying to get them to skip college. mark zuckerberg and bill gates dropped out. you actually graduated from college. what is your view on how important going to colleges? -- two college is? >> i do not know. i think that for different kids it is probably different. i do not know. when i think about the world would look like if build was really successful and other kids could go through that might not other graduate and could choose whether to go to college, that seems better than having them get discouraged for whatever reason drop out of school. >> should they study engineering? >> they should study what they are passionate about. engineering is a good one. sometimes i wish i had studied that myself. >> you are running a multibillion-dollar tech company. >> the discipline is so applicable not to so many things now.
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it is the discipline of solving problems. i think is a great deal to go into. >> for the kids here, you are their idol. what is your message? >> do not give up on what you want to do. do not let someone talk you out of your ambitions. i always think that when you are a kid you put so much stock in what adults say good or bad. nobody, not an adult or a boss or a teacher, really knows what is in store for you except yourself. stick to that. you'll probably end up doing really well. >> elon musk has had started a company is like staring into the abyss of death. i have heard it compared to swallowing shards of broken glass. what was it like for you? what is your view on starting a company? >> it is a long road. i think most things in life that are worthwhile taking a while. it is funny.
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my parents are doctors. both of my sisters are. there's. doctors. that is minimum and eight year commitment, often 12, just before you're ready to be the most junior doctor out there. that is in the back of my mind. i think it is a long road for a lot of folks. if you are fun and you feel like you are learning, i think now is a great time to try it. >> was there a moment with pinterest were you said now i need to make sure i do not give up? in the early days it took a little while for things to catch on. right? >> there were a lot of times that you get a little bit discouraged. for me what was really how -- was helpful was having people around me that i trusted and they cared about me first and the company second. folks like my girlfriend then and now my wife. my cofounder. mentors and friends that were there to say it will be really great if you kept going. >> now you are managing hundreds of employees. you have come such a long way.
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what is your vision for what pinterest will become? >> we think of pinterest as a visual discovery tool. a way that people can get inspiration and plan things in their future. we are trying to build toward that. >> what is your favorite board? >> i have a two-year-old. i have all the activities that i want to do with him. >> you are running a multibillion dollar company. is there a tough guy in there? what is it about ben silbermann that we do not know that made you so successful? >> the press love stories about lone entrepreneurs. single-handedly building things. almost everything that was great was built by a team of people. i think that i've been only fortunate to be able to put together a really great team of people. we all work together to try to build something great.
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>> for the kids here, and they love new tech. is there anything out there other than pinterest? what kind of things do you like? >> what is not cool? it is such an exciting time to download applications, to see what new things are on the web or a desktop. >> who are your idols? >> so many folks. you mentioned people like elon musk, they are amazing. literally making rockets and electric cars. i really look up to other entrepreneurs like jack dorsey of square. i look up to people that are more art than science as well. anyone that is trying to build things that may be worlds better. i think it is really cool. >> specifically along this journey, who has given you the best advice? what has the advice been? >> i do not know. one piece of advice i got was from kevin hart who founded event brite. we were talking.
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i said i know pinterest will not be a huge tech companies. he said why not? he said it could be. i do not know. i think that was a cool thing to say. so many people give you reasons why something won't work. he was saying but what if you imagine that would work and operate it that way. i am always thankful for that advice. >> might lose of injury view with pinterest ceo ben silbermann. the company has raised 506 the -- 560,000 million dollars today. despite 21% of online users using it they do not make significant revenue yet. they have been testing advertising. they have set a goal to start making money this year. we will see what happens. more with "bloomberg west" after this break. ♪
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>> ron conway has been called the godfather of silicon valley. his rolodex is so big he can pretty much connect anyone to anyone from kanye west to larry page. he was an early investor in google and twitter in one of the most active philanthropist s.most active lancer pests. -- philanthropists. i sat down with an exclusive interview with the dallas in san francisco -- with the gala in san francisco. >> the root problem is around affordable housing and affordability in general. president obama talked about the gap in the state of the union speech. in san francisco, we plan to do something about that.
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>> back to the techcrunch awards you call the company to do more. -- companies to do more. tell me what you are asking companies to do. >> in san francisco, which is basically the tech chamber of commerce, is organizing volunteer activities that tech companies can subscribe to and carry out. and a lot of this is happening organically. for example, foursquare, every friday about 80 square employees go around and pick up trash. they call it clean sweep. we are hoping be clean sweep spreads to other companies in san francisco. i am sure that it will. >> ford gives 1% of their time and one percent of their profits and one percent of their equity through philanthropy. i've asked a lot of ceos about your plan to put the out there.
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some say that is nice but our app is already helping people or one size does not fit all. >> the mayor of san francisco is calling on all 1800 companies in go to adopt a 1-1-1. one size does not at all. -- fit all. it is a model that companies can look at and pick which parts of the 1-1-1 they want to subscribe to. >> i know you're close to the mayor. what are you urging him to do? >> the mayor has a seven-point plan to add 30,000 housing units in san francisco by 2020. that is a lofty goal. he is going to work tirelessly to get us there. if we get there, we will solve a
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huge piece of the gap that we have in affordable housing in san francisco. ed lee knows how get it done because he has been a city worker most of his life. he knows the bureaucracy. he knows how to get that done. >> you are the most active investor in silicon valley. marc andreessen has caused you a human router or the godfather. you can connect anyone from mark zuckerberg to ashton kutcher. how'd did you do it? how do you keep doing it? >> you build relationships with people by getting involved in business, investing in a company together, and helping the entrepreneurs solve problems. when you do that, you form lasting, lifelong partnerships and relationships. i started my career in the semiconductor business. many of the people went to work at apple. then they went to work at software startups. a lot of this old guard is still around.
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they are helping launch the new economy. >> founder and general partner ron conway. we will be right back with more "bloomberg west." ♪
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>> you are watching "bloomberg west." i am emily chang. marc andreessen is defending his role on the ebay board after carl icahn accused him of putting his self interests ahead of the ebay's. because of false and misleading. -- he called this false and misleading. he said he refused himself on all liberations. he was part of the group of investors that acquired skype. salesforce has its eyes on your. its first european datacenter will open in london in august. it announced plans to build in france and germany. it will open a new opportunity since many countries have
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stricter data protection requirements. it is an oscar selfie for the record books. ellen degeneres gave her phone to bradley cooper who took a selfie at a star-studded group including julia roberts, brad pitt, jennifer lawrence, kevin spacey. it has become the most retweeted post in twitter history getting almost 2 million retweet in just three hours and timberlake disrupting twitter. the phone used to snap that selfie appear to be the samsung galaxy notary. will the product placement pay off? the ceo from freshwater is with me. his clients include pepsico and e-surance. ellen never said the word
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specifically. how important was it for them? >> that is the danger authenticity. it is the best object placement i've seen. kudos. she made it seem like it was not a paid thing at all. the danger is samson was not mentioned. now samsung have to let everyone know that the most tweeted photo was on their phone. >> how much do you imagine samson paid for this? all of it combined, the commercials, product placement. >> they are charging 1.8 million per add-on the oscars. they bought five ads plus integration. $5 billion or more -- five million bucks easily? >> do you think they had to pay
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additional for that photo to be taken with the samsung galaxy? >> i ensure that is part integration. they also got a little bit of an unexpected treat or ellen degeneres was tweeting selfies from her iphone backstage. it was a mixed bag overall. >> question. was it worth it for samsung? >> yes. the oscars have the second-biggest audience next to the super bowl. 18-49 demographic is huge. if you want to capture a big audience and do it in a way that is authentic, you want it. i would like to see the grammys take a page from them. it was very real and natural. they're still number 22 apple. -- number two to apple. they will have to get people to use their phones backstage and onstage. >> was at a loss for apple. apple does not usually sponsored these kind of event. s. is it a mistake for apple to not be more aggressive? >> apple has always played a
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different came. they are still number one. they will continue to play a different game. they will do things that feel natural to them and do not feel like they're capitalizing on trends as much as setting new trends. i do not think anyone is scratching their heads at apple wondering how they can integrate into next year's oscars? >> how about the social media integration? ellen mentioned twitter quite a few times and then came back on stage and said twitter said it is the most retweeted tweet ever. gold for twitter, right? >> there is an article today that mentioned it was twitter. this is the price of authenticity. if ellen had sent the tweet and said look at this great selfie on my new samson -- if alan had -- on my new samsung phone, it would not have worked. ellen and the staff realized
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that was not the way to go. i fully support the strategy. in the short run it is a big run for twitter. twitter wins every day anyway. >> i feel like the story out of the super bowl every year is that it was about twitter. is this just the way it is going to be from now on? >> i think so. twitter is like the department of water and power. they are the utility that makes the stuff happen and connects us together. i think they will win no matter what. that is the beauty of those kinds of businesses. the challenge for brands is how do they operate on these pipelines and make it seem like they have a natural place in this universe and not some kind of crazy forced place at the table? down for adigg go time which is very frustrating. we are trying to refresh the feed. how big of a problem is that? is that just a blip or do they
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need to be better prepared for these kind of a events? >> it is the equivalent of a big storm surge. you prepare the best you can. things happen. this is a very volatile environment. things happen. that tweet has nearly 3 million right now. they won. everyone won. samsung moved the bar forward as for the duration in a stylish way. ellen degeneres is a big social media queen appeared everyone is -- queen now. everyone is a winner. >> such an awesome moment there from the oscars. i thought she did pretty good. what do you think? >> i love her. pepsico was a sponsor. the pizza boxes have coca-cola logos on them. pepsi may not be so happy either. i like her spontaneity and vibe. >> great to see you.
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thank you so much for joining us. more executive shakeup at microsoft. we are going to talk about the changes and what they might mean nadella new ceo satya when we come back. ♪
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>> welcome back to "bloomberg west." satya nadella is shuffling management and effort to reignite growth here at he is putting former political operative mark penn in the role of chief strategy officer. it is the most expensive for nadella yet. he was named ceo just last month. cory johnson is in new york. with me here is ari leavy. who is mark penn? >> a longtime political strategist. he was a ceo of a pr firm. a big global pr firm.
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a longtime friend of the clintons. worked on hillary's campaign, and failed campaign in 2008. he was brought on at microsoft to help a strategy which is the broad term that can mean anything. he is best known for do not get screwled campaign. >> does he have what it takes to refocus microsoft's business strategy? >> it has been important to microsoft. that guides it how to market and tell the message. you could see this in the shakeup that this is something they really wanted to get right and do it the way that satya nadella want it done. >> some of the biggest names we have become familiar are on the chopping block. what do you think of some of the
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big departures? >> it seems pretty evident it is linked to the whole services. he was one of the finalists. he was a big name. he was a longtime cisco executive eric he was a ceo of skype. -- cisco executive. he was a ceo of skype. they could be something else. regardless, if he is someone that you were considering as a ceo and he is leaving the company, that has to be considered a significant loss. >> i know this is somewhere in, tammy, that you have interviewed really recently. >> she was one of the people that had a notion on how to market the project. if you're going to elevate him to wear on some level he will be he hading this, maybe disagreements on how it would happen. we do not know.
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they're making some choices about how they will tell the story going forward and with who will do that. clearly that will not be there anymore. >> with whom? >> english as a second language. it is not good for me. i'm still working on it. >> a lot of things are second language to you. are there more executive departures to come? can we expect that? >> it is hard to say. it stands to reason there will be more executive departures at microsoft. it stands to reason that they would bring people in. the shuffle is probably not done. he has a job to do. we know he has a big job to do. we would be expecting this would be a foot. >> thank you. turning now to google. the san jose airport is outfitting itself to get ready for google executive private jet to take off. they just broke ground on this project.
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it is expected to open in less than two years. jon erlichman joins me now with how they are getting their airport. >> they have a lot of airplanes. the larry page and sergey brin and the chairman are reporting that this has been common for them to have as many as a dozen planes in their possession. there is this parking lot next to the san jose airport. available for a private airfield to be built. they all came together as part of the story. onlyhat they will be the tenants at the airfield. they are going to have the lion share of the stage -- of the space. here is what he had to say about it. >> a lot of them cannot be based in the bay area. this is a good thing.
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>> they will get this together. it can cost upward of 15,000 or 20,000 bucks a month per plane to park your planes in these kind of facilities. >> i wonder how the people around there feel about airport that is basically catering to google billionaires or millionaires. whatever. >> there are concerns. in the early part of this process, there were concerns. people wanted to know how many would be flying despite there is an airport next door. pushed theit economic benefits that could come from this. >> economic growth is beneficial to everybody. we are talking about investment and jobs. the rest follow suit. the objections have to he'll bike comparison to the greater good. >> now that they have gone
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-- the objections have to pale by comparison to the greater good. >> now that they have gone through the groundbreaking, the goal is to get it billed by the end of 2015. the 49ers are moving into their new stadium. there is a super bowl plans for that stadium. it may work out for any spots to park their plane. >> jon erlichman, thank you. according to glass store, silicon valley interns make more than $75,000 a year. find out which tech titans are paying the most common next. -- the most next. you can watch it streaming on your tablet, phone, apple tv as well. ♪
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>> welcome back to "bloomberg west." technology should theoretically make buying tickets online easier. scammers are buying up blocks of tickets and then reselling them.
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that has created room for new startups like ticket slide in san francisco. cory johnson has more for that. >> it competes with the likes of step up and ticketmaster. it is tools for sales and analytics to help event banners -- event planners and venues doing events like burning man in the austin city limits festival. tell me about where there is room for innovation in your sector. >> sure. there's tremendous room in the ticketing sector. ticket sellers have not historically have tools to help them sell more tickets. ticket sellers today are offering better technology for the venues. >> better how? traditional ticket sellers historically just offer ticketing software. today they offer website tools, it e-mail, marketing tools, social tools, analytics, crm,
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that sort of thing which helps them to sell more tickets more effectively. >> talk to me specifically about that. take an event like burning man. what kind of information are you offering the promoters of burning man. what kind of things did they want to know? >> burning man may not be a fantastic example. burning man tickets sell rather quickly. we recently sold 30,000 tickets in a matter of 44 minutes. i will say that it was very gratifying to see the feedback on social media about how the ticket selling process was more fluid than historically. for other event promoters, the ticket buyer has been rather opaque. venues and promoters have had
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not get access to who these events. there are maven to go to tons of shows who are prolific users of social media. ticketfly helps the venues and promoters like that to better harness or channel those ticket sellers. >> this whole thing with load balancing, do you see the behavior of the sellers of tickets who want to identify someone that they really wanted their show because they will have more of an impact on social media and offer the person to cheaper tickets? >> absolutely. we call them mavens. we know they are users who are buying tons and tons of tickets. we find that 30% of the users drive a tremendous portion of the ticket sales. a big goal is to incentivize those people to continue with this fantastic behavior and reword them for the positive behavior on social media. >> talk to me about market share. who are the leaders?
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where do you see your biggest opportunities? >> the dominant player is ticketmaster. as i mentioned earlier, one difference between us and traditional ticket sellers, we tell them we are not a ticketing company. we are a holistic technology solutions provider. one thing we do is dictating -- ticketing and we do it quite well. with power all of the technology functions for our clients. this is one difference between us and ticketmaster. i think there is an opportunity for upstarts like ours to really eat into the market share of the incumbent providers. >> holistic technology. i think you should add acupuncture. it sounds like it would fit right in. let me ask about concerts and the big shows. of increasing
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importance? >> one is the festival market. there are number of notable festivals which take place in the united states. we are coming up on festival season now. the coachella valley music and arts festival has put its tickets on sale. it has sold out. it has a big acts like archive -- like arcade fire. unfortunately, there is no daft punk on this year's coachella's festival. >> it is a heartbreaker. i will be ok. thank you for your time. we really appreciate it. >> what a bummer for you. >> i still have buble. >> you do. buble.ill always have
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>> it is time for the bwest by. what do you got? >> $75,000. it shows that interns at the highest paid silicon valley company paid them 75 grand a year. if they were to stay for a full year. >> what companies are we talking here? >> you name it. some of the bigger names in technology. twitter, linkedin, facebook. this is a recruiting tool, not so much thinking of it as pay. they want to get a little test drive before they hired them. >> when i was an intern i got paid nothing. nothing. >> that was clearly a bad plan. >> maybe they will throw in some daft punk tickets.
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usually they do not get paid a lot. you have to understand the silicon valley interns make amazing coffee. better than blue bottle. that might be worth 6000 or 7000 bucks a month to some. >> they probably just put the right amount of foam on top. >> to be serious, the use of interns and their free labor is drawing further scrutiny, particularly in silicon valley were so much money is there to be made. the high paid intern is the outlier. that is perhaps while we are talking about appeared the unpaid, abuse intern ending the -- giving their labor to these companies is maybe a more disconcerting story in silicon valley. >> i do know a lot of interest parlayeds who have their internship into jobs. it often does lead to more. thank you all for watching this addition of "bloomberg west." we will see tomorrow.
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-- we'll see you tomorrow. ♪ . . >> welcome to "lunch money,"
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where we tie together the best stories, interviews, and video of business news. i am matt miller in for adam johnson. let's take a look first off at the menu. motors, carmakers wiping the snow off the windshield after a chilly february. wall street, bruce makes his case on fannie and freddie, saying that there is no debate necessary. john dingell wants out, neil neil -- neel kashkari wants in. they have their reasons. social, viral, all things he had any awards.


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